SECTORS ALERT (06.07.2012)
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* CORPORATE: RBI will consider Indian companies' proposals to buy back FCCBs under the approval route, subject to certain conditions, including the rider
that the buyback value of the FCCB must be at a minimum discount of 5% on the accreted value.
* FINANCIAL: ICICI Prudential Asset Management Co in pact with Nordea Investment Management for advisory services. Singapore government's investment arm Temasek remains "very optimistic" on India 's long-term potential.
* FOREIGN INVESTMENT: Qualified foreign investors from US cannot invest in India for now as scheme is yet to get approval from the US regulator.
* INFRASTRUCTURE: Infrastructure-focused private equity funds put their investments on hold due to political uncertainty, low returns.
* LOGISTICS: DHL Group plans to invest close to 21 bln rupees over next few years to expand business.
* METALS & MINING: Coal ministry threatens to cancel allocation of coal blocks to companies selling power in the short-term market; asks them to sign
power purchase pacts on the basis of competitive bidding. Odisha government not to buy private land for Posco's proposed steel plant. Mines ministry asks Goa to ensure that its new mineral policy should ensure sale of iron ore fines are authorised. The implementation of the policy has been delayed in Goa . Inter-ministerial panel to meet Jul 25 to consider issues regarding large investments in the steel sector.
* MONSOON: Indian Meteorological Department said southwest monsoon rainfall was 29.5 mm in the week ending Jul 4, 49% below normal. (NW18)
* OIL & GAS: Government plans to partially decontrol diesel prices after presidential election; per-litre subsidy cap likely.
* PHARMACEUTICALS: Income tax authorities asks management of Sanofi Aventis arm Shantha Biotechnics to produce documents regarding the latter's acquisition by the former; tax department presses ahead of 10.58-bln-rupee tax claim on deal. The Pharmaceutical Export Promotion Council of India seeks clarity from the US Food and Drug Administration on new generic drug user fee norms. New rules for biotechnology firms from Aug 15, under which they can develop generics only by referring to an India-approved innovator biologic drug.
* POWER: Centre proposes legal amendment in sector to facilitate review of performance of power regulators.
* REAL ESTATE: Sheth Developers in talks with JM Financial and Audi to sell part of its eight-storey office building in Mumbai's Prabhadevi area for a
likely 4.2 bln rupees.
* REGULATORY: Reserve Bank of India extends scheme to buy back foreign currency convertible bonds to Mar 31.
* RETAIL: Economic Affairs Secretary R. Gopalan said government would take call on foreign direct investment in multi-brand retail when the time is ripe. Department of Industrial Policy and Promotion tells Swedish furniture maker IKEA that it does not favour the company's condition of meeting the mandatory sourcing requirement under single-brand retail foreign direct investment norms only after 10 years.
* SECURITY FIRMS: Private equity firm CX Partners close to investing around 5 bln rupees in Security and Intelligent Services ( India ).
* TAX: The finance ministry is considering reducing the withholding tax on interest payments on all external commercial borrowings and long-term infrastructure bonds to 5% from 20%.
Deputy Chairman of Planning Commission Montek Singh Ahluwalia says India must refrain from changing the way foreign investors in stocks and bonds are taxed.
* TELECOM: Centre plans to set up new group of ministers to consider imposing one-time fee on spectrum held by all existing mobile operators. The inter-ministerial group under the Department of Telecommunications says that completion of auction of 2G spectrum would not be possible by Aug 31 deadline.
DoT seeks legal view on whether GSM operators should be allowed to use intra-circle 3G roaming pacts through mutual agreements after the Telecom Disputes Settlement and Appellate Tribunal's split verdict. Enforcement Directorate probing 80-bln-rupee foreign direct investment in telecom, accusing foreign investors of violation of FDI norms.
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